Bethesda confirms Fallout 5 as Xbox cuts thousands of jobs
Bethesda outlined several Fallout projects while Xbox faces layoffs affecting about 3,200 employees, according to The Verge.
By Maya Lindqvist · Senior Technology Correspondent
3 min read
Bethesda Game Studios has confirmed that Fallout 5 is in development, giving Xbox a major franchise update during a period of broad job cuts. The announcement matters because Microsoft’s gaming business is trying to emphasize future projects while layoffs hit teams across its studios.
The Verge reported that Xbox is in a company “reset” that includes plans to lay off about 3,200 employees over the next year. The cuts have affected Bethesda Game Studios as well as other Microsoft-owned teams including id Software and Obsidian Entertainment, according to The Verge.
Bethesda director Todd Howard said in a statement that the studio is putting more resources into its established game worlds and wants to support them for longer periods. He said the company is bringing teams closer together so it can release games sooner and keep building them with players “for decades to come.”
Fallout 5 remains far off
Howard gave few specifics about Fallout 5. He described Fallout as one of Bethesda’s biggest priorities and called Fallout 5 the franchise’s “long-range destination,” according to The Verge.
The game is in preproduction, and Bethesda did not announce a launch window. The confirmation comes more than 10 years after Fallout 4, the last mainline entry in the series, was released.
Since Fallout 4, the franchise has continued through Fallout 76, an online spinoff, and Amazon’s live-action Fallout television series. The latest update indicates Bethesda is planning more than one project tied to the post-apocalyptic series.
Howard also said Obsidian Entertainment is developing a new Fallout game, according to The Verge. Obsidian made Fallout: New Vegas, which was released in 2010, but Howard did not provide further details beyond saying more information would come later.
Bethesda is also working on remasters of Fallout 3 and Fallout: New Vegas, The Verge reported. Neither project has a release date.
Elder Scrolls VI is the main focus
Howard also addressed The Elder Scrolls VI, which Bethesda announced in 2018. He did not give a release window, but said the game will use the same technology platform planned for Fallout 5, according to The Verge.
Howard said The Elder Scrolls VI is Bethesda’s main development focus, with most of the team working on the next installment. He said the studio is playing the game every day and that development is where Bethesda expected it to be.
Howard also said Starfield “remains an important part” of Bethesda’s future, according to The Verge. No new Starfield project or release date was detailed.
The Bethesda update follows comments from Xbox CEO Asha Sharma, who previously said the gaming division would focus more on its strongest franchises during the restructuring, according to The Verge. Microsoft completed its $7.5 billion acquisition of ZeniMax, Bethesda’s parent company, in 2021, The Verge reported.
The timing also comes amid employee pushback. Aftermath reported that ZeniMax workers held a rally in Maryland this week to protest the layoffs.
This story draws on original reporting from The Verge.